Context - The Prime Minister, Shri Narendra Modi has announced 'Pradhan Mantri Suryodaya Yojana' under which 1 crore households will get rooftop solar. Also in the Interim budget 2024, Finance Minister Nirmala Sitharaman said that the government will enable 1 crore households to obtain up to 300 units of free electricity every month through the rooftop solar programme.
What is Rooftop solar power?
- Solar photovoltaic (PV) panels can be placed on the top of building roofs to generate electricity. Such a system is called a rooftop solar system. Electricity generated from the rooftop solar system can be used to meet the buildings' energy demand, charge batteries for later use, or can be exported to the electricity grid.
More than 75 per cent of RTS installations are commercial and industrial (C&I) segment, according to the ministry data. Among the other segments are residential and public places.
The RTS numbers in most states are dismal, according to a recent report by the MNRE. Even urbanised, high-income Delhi, which had been allocated subsidised RTS for a capacity of about 30 MW, achieved only 20% of the target.
India currently has about 11 GW of installed rooftop solar capacity, of which only 2.7 GW are in residential units and the rest in commercial or industrial spaces. The government aspired to a target of installing 40GW
What are the associated advantages?
- It can increase the energy accessibility as well as inclusivity due to its decentralized nature. 13% Indian households are either using non-grid sources for power or "do not use any electricity at all." SRT systems could be game changers for these households.
- They help minimise transmission and distribution losses, as the generated power is consumed locally.
- They provide environmentally friendly, inexpensive back-up supply of power , a big advantage, given the persistent supply interruptions in most places.
- No additional space required for installation: One of the biggest advantages of rooftop solar panels is that they can be installed on any type of roof. So, people don't need to vacate a land or invest in buying additional land.
What are the associated challenges?
- High upfront costs: A 30% capital subsidy support from the government does cover a portion of this cost. However, most prospective customers either do not have the savings to cover the upfront costs, or are simply unwilling to invest, given the relatively large amount.
- Specialization & Customization: In addition, residential RTS are highly specialised and quality-dependent, and many customers want their own customisations, which may incur an additional cost.
- Limited rooftop areas: Especially in the Urban areas. Rural areas show higher technical potential based on residential rooftop area (363 GW) compared to urban areas across states (274 GW).
- Low energy consumption: A significant decline in technical is witnessed in states such as Assam, Bihar, Odisha, Madhya Pradesh, Rajasthan, Jharkhand, and Uttarakhand due to the high share of households with low energy consumption per sq ft.
- Competition from alternative: existing subsidies for coal-fired electricity for e.g. make it cheaper than solar power.
- Cumbersome load extension process: In many cases, consumers find their electricity usage is lower than their rooftop solar system’s capacity, requiring load adjustment. However, this process, particularly with local utilities or discoms, is often cumbersome.
- Limited support from Discoms: Discoms have been reluctant to aid rooftop solar installations as they fear a loss of revenue with consumers moving to another energy source.
What is net metering?
Net metering In the case of grid-connected electricity consumers using rooftop solar systems, “net metering” is a mechanism that allow them to first consume the electricity generated from the rooftop system and then export surplus energy, if any, into the grid. Thus, the intake of electricity from the grid reduces. At the time of electricity bill generation, the consumers are billed only for the net electricity they have consumed i.e., the difference between the electricity they have consumed from the grid and the surplus electricity they have exported to the grid (from the rooftop solar system).
What can be a way ahead?
- Timely implementation and penalty clauses: Establishing fixed timelines for installation tasks and implementing penalty clauses for delays can incentivise prompt action by power distribution company (discom) officials, ensuring efficient project execution.
- Manufacturing ramp-up: To meet the ambitious target of 30 GW capacity addition, there is a pressing need to ramp up domestic manufacturing facilities for solar cells and modules. This would reduce dependence on imports and drive down installation costs.
- Awareness campaigns and workshops: Discoms should conduct extensive awareness campaigns and technical workshops to educate potential beneficiaries about the benefits of rooftop solar installations and the available support schemes.
- Accessible financing: Nationalised banks should offer easy financing options with affordable interest rates for rooftop solar projects under the PM Suryodaya Yojana, facilitating broader access to capital for installation.
- Provision of metres: Discoms should streamline the process of providing solar and net meters to reduce installation time and expedite project completion.